Weapons of Mass Destruction (WMD)

EUROPE

RUSSIA: "Factor Of Political Life"

Dmitry Gornostayev said on page one of centrist Nezavisimaya Gazeta (8/29): "As he meets with Clinton, Yeltsin will probably try to make the most of their friendly relations. But the American may not be quite ready for a frank expression of friendly feelings. He may want to instruct but not help materially.... The 'strategic character' of Russo-American relations may change considerably. As of today, Moscow is not in a position to dictate or at least uphold its rights. Being economically insolvent, it may let the United States win political concessions on matters like anti-Iraq sanctions, cooperation with Iran and India, Kosovo, to name but a few. The only consolation is that Washington, evidently, is not going to offer us money, and consequently, it will not ask us to soften or review our stand on those issues."

"Hard Trip"

Andrei Kabannikov filed from Washington for reformist, youth-oriented Komsomolskaya Pravda (8/29): "There are few worse countries for President Clinton to visit now. He is not bringing money in addition to the IMF's $22 billion, and, under the circumstances, discussing many aspects of bilateral cooperation is just pointless. Clearly, 'friend Bill' is risking a lot. Should Russian economic reform collapse, he will face charges of a serious policy failure."

"Duma May Not Triumph In The End"

Valeriy Vyzhutovich said on page one of reformist Izvestiya (8/29): "Even though the left-wing opposition is confident that its ultimatums will be accepted, there are ever more doubts about it being able to win in the end. It does not seem to be quite aware of what is going on and of its own potential when it orders an about-face on this country's political and economic strategies. So, there is no guarantee that the president will resign or that the Duma will have full control over the government."

"Liberal-Democratic Idea Fails"

Leonid Radzikhovskiy stated in reformist Segodnya (8/29): "The failure of the liberal-democratic idea means that the pendulum will automatically swing to the left. No, private property will not be banned, but 'the oligarchy-nomenklatura rule' will acquire a distinctly pink (near-communist)-brown (fascist) shade. Power and property will be redivided in favor of the national-communist Duma and its partners among national-entrepreneurs, exacerbating national decay."

"Russia Has No Power Center"

Yelena Tregubova asserted in reformist Russkiy Telegraf (8/29): "There is certainly no power center in Russia today. The president is no longer in control, confining himself to greeting foreign friends. The government is still in the making. The Duma is busy fighting for portfolios and extra privileges. Governors are so perplexed and discontented that, compared to them, Chechnya may soon seem like a child's play. Worst of all, nobody 'in the upper structures' knows who will control the army and special services, should something untoward happen, and who controls them now."

"To Forsake Ruble Is Inadmissible"

Dmitriy Dokuchayev stated on page one of reformist Izvestia (8/28): "For Chernomyrdin, even though he is still an acting premier and has his hands full these days, to forsake the ruble is

inadmissible and irresponsible."

"Power Crisis"

Vasily Golubev opined in centrist Nezavisimaya Gazeta (8/28): "The authorities, through their stupid moves and statements over the past few weeks, have done what the opposition could not have done on its own. They have increased its social base in time for parliamentary elections, whether early or regular. The opposition cannot miss this chance. Otherwise, that would be the end of it."

"Joint Program"

Reformist Russkiy Telegraf (8/28) commented editorially on an economic statement drafted by a tripartite commission that includes representatives of the Duma, the Federation Council and the government: "It is an attempt to adapt the existing system of state capitalism to possible social problems, while maintaining its basic principles.... The document's big virtue is that it aims at retaining the foundation of a market economy built in the reform years."

"Nobody Is Interested"

Svetlana Lolayeva contended in reformist Vremya-MN (8/28): "Nobody seems to be interested in what is written in the joint economic memorandum by the Duma and the government. It is a disposable paper which, after Chernomyrdin uses it as 'hard evidence' of his willingness to listen to parliament, will be shelved for good. The funny thing is that everybody knows that."

"Chernomyrdin Responsible For Crisis"

Vladimir Poshatayev said on page one of official Parlamentskaya Gazeta (8/27): "The main thing is for Viktor Chernomyrdin to assess the situation and take urgent measures to resolve the crisis. His statement to the effect that there is 'every possibility to overcome the crisis' sounds encouraging. But his harsh comments on the extent of the problem stuns. It is Chernomyrdin, rather than Kiriyenko, who is responsible for a disastrous crash in the currency market and 'black Tuesday.'"

"Prevent Panic"

Mikhail Glazychev of the Aton investment company, writing in reformist Izvestiya (8/28), urged the authorities "to prevent panic, break their weird 'code of silence' and make a serious policy statement. After all, this country has not run out of its gold and currency reserve. The Central Bank must be more active and continue to support the ruble."

"Yeltsin's Absence Inexplicable"

Teimuraz Mamaladze said on page one of reformist Noviye Izvestiya (8/28): "Russians must be thankful to Bulgarian President Petr Stoyanov, now visiting in Moscow, for a chance to see and hear their own president. With this country in an emergency, it is hard to explain Boris Yeltsin's cloistering himself in his suburban retreat, reportedly preparing for a Russo-American and other summits."

"Be Consistent"

Yuliya Ulyanova wrote on page one of reformist Segodnya (8/28): "All spring and summer the Kiriyenko government worked on a program of action, hoping to secure money from the IMF and the World Bank. But it was dismissed and its policy abandoned just as the money began to arrive and work got under way to implement the program. In these dire days, it is most

important to be consistent, no matter who signs government orders."

"What If?"

Dmitry Volkov and Gleb Cherkasov suggested on page one of reformist Vremya-MN (8/28): "With the president virtually absent, his opponents--comrades in distress--conjuring up a fragile unity scheme, and nobody taking any 'economic action,' the population may decide to take the initiative. If it does, it is anybody's guess what might come out of this."

BRITAIN: "Clear Signs Of A Retreat From Free Market Reform"

BBC Radio's World Service commented (8/28): "These are grim, possibly dangerous times, in Russia. There is still no word from Mr. Chernomyrdin on which direction the country is to take. There are clear signs of a retreat from free market reform and a drift back to the economic management methods of central planning and state control. These might well help Mr. Chernomyrdin form a government of national unity by attracting the support of the communists, but they will not reassure foreign investors and creditors who are now counting their losses in billions of dollars."

"Washington Rudderless As Ruble Tumbles"

The conservative Daily Telegraph commented from Washington (8/28): "With Russia imploding, Japan in economic meltdown, Iraq rampantly defiant, and the Middle East peace process apparently adrift, allies and foes are asking, 'Where's America?' In terms of clear, effective leadership, the world's only superpower is nowhere to be seen.... A worry about appearances erodes Mr. Clinton's ability to swing public opinion behind decisive action abroad. It is harder to win support for a fight against terrorism when some people suspect that the president is really fighting Kenneth Starr, officials privately concede. But the coincidence of calamity at home and abroad is also, say many, merely that--a deeply unfortunate coincidence.... It is assumed in Washington that Mr. Clinton's domestic travails have exacerbated his tendency to conduct foreign policy on an ad-hoc basis, without clear goals or consistent effort to achieve them."

"Rescuing Russia"

The liberal Guardian had this lead editorial (8/28): "It is true that Russia is not in the technical sense a critical part of the world economy. But if another large segment of humanity were to pass into economic darkness, the sense that things are out of control would massively feed the panic surges which can have such a devastating effect on international economic life. That Russia has in effect defaulted on its debts makes this even more likely."

FRANCE: "Betting On The Right Horse"

Pascal Aubert observed in right-of-center La Tribune (8/31): "For the West, which has backed Yeltsin for the past six years, it is time to pick the right horse to bet on.... But the question is to guess who will occupy the place left vacant by Yeltsin's departure.... Short of being able to influence Russia's future course of events, Washington and other Western capitals have no other choice but to rely on a former apparachik of the Brezhnev era."

"A Major Crisis Or Total Collapse?"

French Academy Member Helene Carrere D'Encausse judged in right-of-center Le Figaro (8/31): "The task at hand is to keep today's major crisis from turning into a fatal and total collapse.... If a coalition government can be formed with the Communists and if Yeltsin accepts power-sharing...then the country could go forward toward some political stability."

"Chernomyrdin: Russia's Only Chance"

Former Russian general Alexander Lebed, interviewed in right-of-center Le Figaro, said (8/31): "Chernomyrdin has a very little chance of slowing down Russia's collapse. But at least he has a chance. The others have none at all. It is in everyone's interest to support him. Otherwise we will sink."

"Lebed's Time"

Charles Lambroschini concluded in right-of-center Le Figaro (8/28): "If one day rioters head to the Kremlin, they will have no mercy for Chernomyrdin. This communist apparatchik, who has become a rich capitalist, never followed any other policy except opposition to progress. For having planned reforms he has never achieved, he is one of the first responsible for today's disaster. On the other hand, rioters probably would acclaim Lebed. The charismatic general (Lebed) symbolizes the fantasies of the Russians who are convinced that the country can only be run by a strong power."

"For Clinton Administration, Ball Is In Russians' Court"

Washington correspondent Jean-Marie Macabrey and Blanca Riemer wrote in centrist La Tribune (8/28): "The administration no longer knows what to do to help the Kremlin and thinks that it is the Russians' turn to play.... The Americans are not, of course, completely inactive. Behind the scenes, pieces of advice are given to Russian leaders about the debt restructuring plan.... The Clinton administration policy about Russia has provoked criticism, and people fear the September 1-3 meeting may lead to no result at all."

"Lebed Not Likely To Accept Second-Class Role"

About the possibility that Lebed may be called to power, Laure Mandeville judged in right-of-center Le Figaro (8/28): "Lebed is not likely to accept a second-class role because he is in an excellent position for the next presidential election.... Is it so certain that Chernomyrdin wants a such an embarrassing partner?"

"The West's Blindness"

Jacques Amalric wrote in left-of-center Liberation (8/28): "It took the collapse of the Russian system under its own contradictions, and the destabilization of the world economic order for the West capitals to recover their common sense: Bonn and Paris are going to write to Chernomyrdin and tell him he can count on an external aid only if he applies the reforms he had suggested during his five years in power. We were so used to the West's blindness--with Chirac repeating that Russia should not be humiliated, Kohl always ready to laud Yeltsin and Bill Clinton's blindness--that we are almost surprised by such boldness."

GERMANY: "IMF Money Good Investment For Kosovo"

Left-of-center Berliner Zeitung (8/29) noted: "Although the reasons for the current crisis are based on economic speculation, it is now up to politics to make the next move. Helmut Kohl and Bill Clinton will try to back the new Russian government. It seems that the Yeltsin era is over and Chancellor Kohl is now obviously--mainly for pragmatic reasons--pinning all his hopes on Chernomyrdin. This may not be a long-term concept, but it is the only means to avert looming dangers. The current strategy is that Moscow will get money--but the price must be cooperation to resolve the Kosovo crisis. If this can help save innocent lives in Kosovo, the money if the IMF is a good investment. And maybe, via a detour of a humanitarian consensus, Russia will find more easily access to Europe, to which it belongs anyway."

"Horror Scenario"

Lothar Loewe had this to say in an editorial in mass-circulation, right-of-center Bild Zeitung of Hamburg (8/31): "During his visit to Moscow, U.S. President Bill Clinton will entreat the Russian government to continue the policy of economic reforms and to set up a lasting democracy. A Russian economy in a standstill and a state of bankruptcy, the international stock exchanges shaken by crises and the fear of a crash, in addition maybe rebelling Russian forces with a finger on the nuclear trigger--this would be a horror scenario that Clinton, Kohl and all other Western state leaders want to avert at any cost. With or without Boris Yeltsin--the creation of political stability in the Kremlin is now the most important task."

"Reform Efforts Have Failed, Country Plundered"

Business Handelsblatt of Duesseldorf (8/31) argued: "It is time to accept harsh reality: The reform efforts have failed, democracy is not firmly embedded in the country, and the country has been plundered. An end to the tragedy is not in sight. Even though Yeltsin was able to reject all demands for his resignation with a 'nyet' during the carefully orchestrated appearance on TV, a clear look at his picture on TV indicates that he will not stay in power for too long. The fact that 'Czar Boris' summoned back Victor Chernomyrdin in an emergency situation...is his declaration of bankruptcy. Yeltsin is only interested in safeguarding the well-being of his family and an orderly transfer of power."

"A Firewall For Russia"

Josef Joffe had this to say in an editorial in centrist Sueddeutsche Zeitung of Munich (8/28): "Can the West build a state for the Russians? No, it cannot. But it can and must do something now. Even if Clinton and Kohl's power is vacillating, they and their colleagues must set up a consortium for Russia, since the World Bank and the IMF no longer have the authority to force essential moves with their funds. This emergency fund must extinguish the looming political danger, i.e., it must stop the total loss of confidence among the small savers who are desperately lining up in front of banks to get their money back. This assistance should serve only one goal: to guarantee their accounts to prevent these millions of voters from defecting to demagogues such as the communists, since the only thing that comes to their mind to resolve the crisis is the nationalization of industries and the printing of more money.... Can the West drop Russia? Maybe, since Russia is not as integrated into the world economy as Japan. Also, even the wildest men such as Lebed and the communists cannot close their eyes to reality. They can print money, but a few months later the people will realize who deceived them.... It is risky to bet on Russia's self-healing forces. It would be wiser to pay the insurance."

"Russian Setback"

Werner Adam mused in a front-page editorial in right-of-center Frankfurter Allgemeine (8/28): "What influential circles in both chambers of parliament and supporters of Premier Chernomyrdin have thought of in order to resolve the looming financial insolvency of the state corresponds to views of we thought they had buried with the collapse of communism.... It is unprecedented and worrying that the views of the communists are almost congruent with the views of the financial oligarchs.... What is even more alarming for Western observers are attempts--and not only by the communists--to distract attention from domestic problems by advocating an aggressive national patriotism and by blaming the West...and the IMF...for the financial misery of the country. A development is looming that must be worrying Russia's neighbors."

"Russia At An Abyss"

Ralf Neubauer argued in a front-page editorial in right-of-center Die Welt of Berlin (8/28): "With

the replacement of courageous reformer, Sergei Kiriyenko, Boris Yeltsin proved that he feels more obliged to the powerful financial oligarchs and their privileges than to the general well-being. We must fear that all possible successors to Yeltsin will make arrangements with the profiteers under the veil of political power. Yesterday's anti-crisis program clearly shows how far Russia has strayed, in the mean time, from the path of virtue. Even if the program is implemented in a mitigated form, the economic and financial crisis is likely to escalate even more. With or without Yeltsin, the country is unstoppably stumbling toward an abyss."

ITALY: "The Summit Of Weakened Leaders"

Vittorio Zucconi commented in left-leaning, influential La Repubblica (8/31): "This is a summit of ghosts, where those absent count more than those present.... Kenneth Starr, Russian banker Berezovsky, Red Army generals, and Afghan's Talibans--these are the people who should be meeting in Moscow."

"Moscow's Specters"

Enzo Bettiza commented on the front page of centrist, influential La Stampa (8/30): "Due both to the complexity and volatility of the Russian chaos and the fragility of his own personal situation, Clinton certainly will not be in a position to make major decisions in his discussions with Yeltsin: He will neither be able to exert pressure on the Russian leader to prompt impossible reformist revivals, nor promise him new waves of dollars. He will be able, at most, to ask questions and express concern about the basic political issue hiding behind the earthquake which is eroding the post-Soviet Russian economy and society: the dramatic nuclear issue.... What would happen if the Russian presidency and political power were to fall into the hands of an over-excited 'Bonapartist' such as General Lebed, perhaps supported by Zyuganov's communists and Zhirinovsky's chauvinists ? These are the specters Clinton will have to exorcize, at a minimum, during his talks with Yeltsin."

"The Monday Of Truth"

A commentary by Franco Venturini in centrist, top-circulation Corriere della Sera said (8/29): "Clinton is already sending a strong political message with his choice to respect the appointment at the Kremlin. So far, he has not been dissuaded by the prospect of a summit between lame-duck presidents which promises to be half-tragic and half-comic. Nor have anti-reformist winds in Moscow dissuaded him. He was, instead, pushed by a desire 'not to lose Russia,' not to renounce to post-Berlin Wall Western hopes and interests, not to lose sight of the finger on the Russian nuclear button. By Wednesday, the picture could be Chernomyrdin in power and Clinton disappointed but sympathetic. Will this be enough for the markets? It's not certain."

"Nightmare Of A World Crisis"

Economic analyst Federico Rampini stressed in left-leaning, influential La Repubblica (8/28): "What is most scary is not the spiral of panic related to the declining markets, but the impression that political answers are either inadequate or inconsistent. The series of mistakes made by the IMF over the last year, Clinton's evident weakness, the silence of Germany in this pre-electoral phase, the eternal lack of European leadership: these are the factors that create fear."

"Unbelievable Chain Of Mistakes"

Respected economic analyst Mario Deaglio concluded in influential La Stampa (8/28): "In this chaotic situation, two lame-duck presidents are scheduled to meet in Moscow next week. The meeting risks becoming a melancholic farewell between two leaders who, in reality, may no

longer have anything to say to each other. In the meantime, the fury of the storm--which could have been at least curbed with more attention on their part--is making all weak international currencies vacillate."

"The Czar Without Powers"

Foreign affairs commentator (and former Moscow correspondent) Paolo Garimberti wrote in left-leaning, influential La Repubblica (8/28): "The most likely scenario is a large-coalition government which will make the communists happy but will leave real power in the hands of the economic-financial oligarchies which elected Yeltsin first and then delegitimized him when he tried to get rid of them: a sort of new Politburo.... There are no alternatives at present to the indestructible prime minister, or, better, they are worse and more threatening for the overall picture of international relations, such as populist general Lebed.... This Russia will be an extremely difficult interlocutor for the West, much more than it has been so far. To deny it any financial support seems to be the most logical solution for the time being, as we wait for the confusion of these days to clear up and to understand who is really in charge and where he intends to go. But to what extent can we let the Russian crisis deteriorate without risking a coup by the military and security forces which, so far, have kept themselves totally absent from the scene? After all, Chernomyrdin and his business partners are still better than having a general who has just grabbed power in the Kremlin."

"The Nightmare Of A Coup"

Arrigo Levi wrote in centrist, top-circulation Corriere della Sera (8/28): "In the absence of certainties, our instinct, and the novelties which have changed the face of Russia over the last few years, make us hope that this big country will succeed in emerging from the crisis. After all, a number of characters who did not exist ten years ago are moving on the economic and political scene; new democratic institutions have taken root; and even though Zyuganov's communists are asking for powers which, by blocking the necessary reforms, would also prevent a solution to the crisis, nobody would be able to restore communism, and nobody would really want that. But only the Russians can find a solution to their crisis. The West can only offer support. It is Russia which has to choose its fate."

BELGIUM: "Clinton's Trip To Chaos"

Peter Vandermeersch concluded in independent Catholic De Standaard (8/31): "It is a good decision (to go to Russia).... Clinton will (also) have to be careful that his visit to Yeltsin is not seen as an expression of support of a beleaguered president because it might imperil U.S. relations with the future leaders. As important as Clinton's meeting with Yeltsin is [so is] his meeting with the opposition leaders on Wednesday. It is absurd to think that (it is) only for the Russians (that) very much is at stake. The fall of the stock markets on all stock exchanges in the world confirmed last week how the various world economies are riveted to each other. Wall Street is extremely close to the Red Square. As if this was not sufficient--with or without wandering leaders--thousands of Russian nuclear warheads remain aimed at American and other Western cities. Thus, there are enough reasons to start to have a dialog with Russia and its leaders even in the middle of chaos."

"If The West Closes Its Eyes To Communists' Triumphant Presence"

Moscow correspondent Boris Toumanov commented in conservative Catholic La Libre Belgique (8/31): "How much will the West have to pay if today it closes its eyes to the Communists' triumphant presence in Mr. Chernomyrdin's government, in order to prevent an authoritarian evolution in Russia? That is the question."

CANADA: "New Tycoons Of Moscow"

Centrist La Presse editorialized (8/31): "It is a very gloomy summit that will begin tomorrow in Moscow. President Clinton will try to divert the attention from the Monica Lewinsky affair while President Boris Yelstin will want to give the impression that he is still holding power even if the firing of Prime Minister Kiriyenko has shown that it is the press and the finance tycoons that have the last say.... He (Yelstin) is so motivated by the love of power that he is willing to share it with questionable characters and even to let them guide him.... When Clinton meets with Mr. Yelstin, he will have to keep in mind that Russian politics is not only less democratic that it looks but that it is still also under the strong influence of an oligarchy, suspected by the FBI to be linked with a great part of drug traffic in the world. And this poor country wrongfully governed is not an Indonesian or a Colombian type of country, but the second nuclear power in the world."

"When Bill Meets Boris, Will Anyone Care?"

Correspondent John Bierman wrote in the business-oriented Financial Post (8/28): "It's likely to be a pretty discouraging spectacle--the world's two most deeply discredited elected leaders, Bill Clinton and Boris Yeltsin, meeting in Moscow next week to go through the charade of doing something meaningful about a myriad of problems, but in fact producing nothing more substantial than a few photo opportunities.... By comparison with Yeltsin's, Clinton's problems, like his apology, are minimal. True, he has almost certainly forfeited the honored place in history he hoped for, and for which his undoubted talents might well have qualified him. But he will likely be spared impeachment, the most likely formal penalty being some kind of Congressional censure vote for devaluing the presidency by his tawdry behavior. Many will think that is better than he deserves, for if ever a troubled world needed real leadership from the White House it is now.... Next week's summit will be an opportunity not so much lost as thrown away."

HUNGARY: "Summit Of The Life Preservers"

Right-of-center Napi Magyarorszag featured this commentary by Laszlo Daroczi (8/29): "The only thing that might persuade Clinton [to throw a life preserver to Russia again] is that, if they fail to restore things to normal. Then, in addition to the current economic crisis, Russia will also be hit by a political one as well. And a possible...social explosion--in addition to the horror of a global crisis--might have grave security...consequences. If Clinton succeeds in appearing as the savior of Russia, that would certainly throw him a life preserver after his domestic trials. True, however, that the president cannot offer anything to his Russian colleague without getting something in return: Primarily a more flexible attitude in disarmament and international issues which are of crucial importance for the American national security, too. And in its present condition Moscow would probably not be opposed so vehemently to NATO's Kosovo intervention which has been delayed so long."

"The Bear's Shadow"

Influential Magyar Hirlap carried this by contributor Peter Szakonyi (8/28): "The most important foreign institutional investors in the Budapest stock market moved quickly and withdrew their money from the Hungarian market as fast as they could. When they will...realize the differences between the countries of the former Eastern bloc is impossible to tell at this moment. The only positive feature of the Russian crisis is that it is still possible...to withdraw money from the Hungarian market.... This is a bitter consolation, but in other countries of the Eastern region it is almost impossible."

KAZAKHSTAN: "The Final Patron"

Independent weekly Delovaya Nedeylya said (8/28): "There is no assurance of a successful ending to the Russian political crises because the state Duma is governing the country de facto, and it [the Duma] is in a pro-communist, anti-president mood. The president has actually been driven into a corner and Mr. Chernomyrdin will depend to a great extent on the leaders of the Duma's factions, who are not much interested in his status as a presidential successor in the year 2000 elections."

"The Principal Hero Of Russian Reform Is Returned To Government"

Independent Kazakh-language Zhas Alash observed (8/27): "Russia is very dependent on the oligarchy, and Berizovsky's support for Chernomyrdin explains his (Chernomyrdin's) return to the government."

POLAND: "Summit Of Weak Presidents"

Centrist Rzeczpospolita featured this commentary (8/29-30) by Jaroslaw J. Szczepanski: "Boris Yeltsin's meeting with Bill Clinton in Moscow will not be an encounter of two strongmen, but of two weak persons who cannot cope with a crisis in their respective states. With Yeltsin, the crisis has a political-economic character, with Clinton, it is of a political-moral nature.... Never since 1991 has Yeltsin been as weak as he is today. Clinton, called on by the Republicans to resign, is threatened with impeachment.... Both men urgently need an international success."

"Shortage Of Statehood"

Leopold Unger put forth this view in liberal Gazeta Wyborcza (8/31): "Provided three conditions are met, a wise Western policy toward Russia is not a hopeless mission. First, the West must finally acknowledge that Russia has never had a free market or a democracy.... Second, the West should substantially review what its policy toward Russia is to be. The West must accept the fact that there is no longer the 'good chap Boris' as a reliable partner in the Kremlin. Pats on the shoulder and chuckles are over; it is time for normal business to start. The West's position should shift from philanthropy to strategy.... The West must say that...money matters, but institutions are more important--that Russia's disease is not the shortage of dollars but the shortage of statehood. Clinton should make it all clear in Moscow tomorrow...that...new dollar loans will be granted based not on promised reforms but on reforms that are implemented."

"Who Governs In Russia?"

Centrist Rzeczpospolita had this comment by Piotr Jendroszczyk (8/28): "To say that the Yeltsin era is over seems to be premature. Although the communists are not surrendering and calling for Yelstin's dismissal, their maneuvers hint that part of the reason for this [reaction] is that they are ready for a political compromise with the president.... Forcing Yelstin to immediately abdicate would rid Russia of a man who--whatever else can be said of him--guarantees the continuation of democratic reforms. And this is vital for the West, whose further assistance Russia intends to seek as demonstrated by Chernomyrdin's meeting with the head of the IMF Michel Camdessus.... All scenarios for the future, however, may turn out to be mere fantasy once the streets of Russia's cities are teeming with millions of desperate and hungry citizens whose legendary patience must also have limits."

SPAIN: "Soviet Agony"

Conservative ABC noted (8/28): "There cannot be anything worse right now for the Russian people now than to see communists and ultranationalists trying to grab power again.... The

failure of Russia to adopt a market economy comes from its twisted Soviet roots, as if it were trying to travel on a highway with a bicycle.... The fall of the Soviet empire has not finished and will not end until this methodology comes to an end. For now, we witness the agony, the death rattles of its economic system."

"The Jolt Arrives"

Liberal El Pais opined (8/28): "The gravity of the financial crisis shows no sign of letting up. Day after day, the financial markets, particularly the stock markets, show evidence of the deterioration of...Japan, Russia, and Latin America.... It is up to the big [powers], the United States in particular...to show leadership."

EAST ASIA AND PACIFIC

JAPAN: "U.S. Perplexed With Russia's Economic Confusion"

Conservative Sankei Shimbun's Washington correspondent Maeda noted (8/28): "How to rescue Russia's crumbling economy will be the first and foremost concern during the upcoming summit between Clinton and Yeltsin. The focus will be on whether President Clinton will continue to support Russia's reform efforts. Doubts have been expressed in Washington over extension of further financial assistance to the russian economy, which seems to be in chronic crisis. At a time when both leaders are facing erosion of their political footholds domestically, it is very unlikely that they can change policies or strike deals that will shape a new bilateral relationship for the 21st century."

"Yeltsin's Authority In Eclipse"

Liberal Mainichi Shimbun's Moscow correspondent Ishigo wrote (8/28): "The liberal-minded reform policy set by former deputy prime ministers Gaidal and Chubais and outgoing premier Kiriyenko will be suspended completely. There is a growing possibility that the Yeltsin government's goal of Russia becoming a full member of the international economy will be postponed. In ordinary times, President Yeltsin might have taken drastic actions to prevent a departure from the reform line. However, he has no resources available amidst the current financial crisis, which may cause an economic meltdown. In order to avoid further panic and to restore people's confidence in politics, Yeltsin is being forced to strike a deal to form a national unity government for mere form's sake."

CHINA: "Looking Forward To U.S.-Russia Summit Meeting"

Yi Lin wrote in official Beijing Morning Post (Beijing Chenbao, 8/31): "Although some Russian officials pin hopes on the upcoming U.S.-Russia summit, it is widely believed that the U.S. president will not bring to Yeltsin any prescription to fix the current crisis in Russia. The summit is expected to become a new starting point for U.S.-Russian relations.... A new economic bond now highlights the two nations' relationship."

"Russian Crisis Impacts Wall Street"

Zhang Liang wrote in official Communist Party People's Daily (Renmin Ribao) (8/29): "The entanglement of the Russian economic and political crisis has aroused fear among American investors.... Some economic experts worry that a further deterioration of the external crisis will possibly precipitate the U.S. economy heading into a recession."

"Ruble Plummets Wildly; Russians Amidst Fear And Panic"

Li Qingyi wrote in official Chinese Youth Party China Youth Daily (Zhongguo Qingnianbao)

(8/28): "Experts predict that prices of all types of commodities in Russia will rise by 20 per cent by the end of this year. Just as with the previous currency reforms, there is now a surging rush for goods in Moscow."

HONG KONG: "Learning From The Hong Kong Experience"

The independent, English-language South China Morning Post (8/30) had this editorial: "Even now, the SAR (Special Administrative Region) is not immune from the effects of the Russian crisis, which was one of the main causes of the latest fall on Wall Street that is expected to put fresh pressure on the Hang Seng Index tomorrow. Financial Secretary Donald Tsang Yam-kuen even cited events in Moscow as one reason why Hong Kong's depression may intensify still further over the next three months. While admitting two-way trade was minute, Mr. Tsang said Russia, with its nuclear weapons, was such a big country that the whole world would inevitably be affected by its troubles.... But if, and when, sanity does finally prevail, the eventual solution to Russia's woes may draw upon Hong Kong's experience. For the IMF is now talking about the introduction of a currency board similar to the SAR's as one possible way of rescuing the value of the ruble. This only goes to show that, not only is the peg the best solution for the SAR, but it is also a model which other countries in trouble can usefully draw on."

SOUTH KOREA: "Summit But No Gain"

Reporter Park So-hyung of the conservative Segye Ilbo (8/31) commented: "Of course the summit's top priority will be the economy, but with Boris Yeltsin facing a dead end, there is skepticism that nothing of substance will come out of the summit.... Due to Russia's uncertain future, additional U.S. financial assistance is not likely to come during Clinton's visit. Russia keeps moving further away from a market-oriented economy, implying more headaches for Washington.... The United States' hesitation over Russia is understandable as there is danger that Moscow may decide to give up reform. Washington may have to rewrite its entire Russian policy."

"Clinton's Scanty Gift For Russia"

Washington correspondent Shin Jae-min of the moderate Hankook Ilbo (8/31) commented: "President Clinton's gift package for Russia will be meager, reflecting the U.S. dilemma over efforts to revive Russia's economy, which are now being likened to filling a 'bottomless jar.'... The United States must feel a burden over its failed Russia policy, but more critical is that there is nothing Washington can do to save Russia. About all Clinton can do is emphasize the importance of economic reforms to Yeltsin.... The U.S. president will meet with Viktor Chernomyrdin, who has emerged as the central power in Russian politics. Some people predict that meeting will be the real summit."

"U.S. Urges Russia's Reform But Balks Over Assistance"

Independent Hankyoreh Shinmun (8/28) commented: "The upcoming Clinton-Yeltsin summit will not find a real solution for Russia, mainly because any workable solution would require enormous political assets at home from both presidents, which neither of them currently has at this point. There also is recognition on the part of the United States that Russia has no ability to make effective use of the funds coming in from abroad. The absence of Yeltsin's political leadership is obviously making the situation worse."

"Russia Virtually Bankrupt"

Moderate Hankook Ilbo (8/28) commented: "The earthquake coming from Russia is shaking up the entire world's financial markets. What's more serious is that the phenomenon is just

beginning.... It certainly looks as if Russia's declaration of a moratorium--on dollar-denominated debts this time--is just a moment away, leaving the impression that the country is very close to a total default.... To make up the loss in Russia, Western banks will soon turn to international markets trying to find funds there, a prospect which will drastically destablize the world's interest rates. In this scenario, the world's stock markets face a collapse in the end."

"Solution Seen Nowhere"

The independent Hankyoreh Shinmun (8/27) commented: "As Russian experts once pointed out, Russia may well be heading toward becoming a second Indonesia burdened with 10,000 nuclear missiles.... Russia surely has the potential to bring a world-wide economic disaster."

THAILAND: "An Unstable Russia Affects World Peace"

The independent, English-language Nation had this editorial (8/28): "The faster Russia recovers from the crisis, the better it is for all of us. The euphoria of the post-Cold War era, which promised a harmonious East-West relationship, has all but evaporated. Without ideological differences as in the past, economic insecurity and disparity between Russia and the West is potentially more destabilizing than anything we have seen in the past. This is because Russia has enough nuclear bombs to blow up the planet."

SOUTH ASIA

INDIA: "Clinton And Yeltsin Should Discuss Nuclear Proliferation"

An editorial in the centrist Times of India held (8/31): "The nuclear weapons powers who, because of their folly, created monstrous arsenals, should now pay to ensure that the economic collapse of Russia does not lead to nuclear proliferation to several states and non-state actors. This issue should be seriously addressed in the forthcoming non-aligned summit as well as in the meeting between Mr. Clinton and Mr. Yeltsin."

"House Of Cards"

The right-of-center Indian Express had this analysis (8/31): "While Russia's economic crisis is frightening enough, it is its political fortunes that are panicking the world.... Ominous in a global sense is the prospect of an overturning of the political and economic systems so painfully established in Russia in recent years.... It seems likelier than not that Yeltsin's successor would take a different political and economic course, one that sought inspiration in Russia's past. The West has abundant cause for alarm.... The gloom threatens to reverse Europe's modest recovery and turn America's just-beginning slowdown into something far worse.... America's irrational stock market boom, about which sensible economists have been warning for long, could go spectacularly bust and take the rest of the world down with it."

BANGLADESH: "Russia's Crisis Deepens"

Independent, English-language Financial Express had this editorial (8/31): "There is a need for flexibility in policies to keep Russia on the reformist path and the Russian economy going; this is also necessary to preclude a wider international economic instability caused by the Russian economic crisis. The IMF and others, therefore, can hardly afford to wash their hands 'neatly' of Russia."

MIDDLE EAST

QATAR: "Summit"

Semi-independent, English-language Peninsula had this editorial (8/31): "With a serious discussion of the economy ruled out, the two leaders will ponder over issues like Kosovo, NATO expansion and their differences over Iraq and Iran--issues over which a wounded Yeltsin is unlikely to cross swords with Clinton. This being the case, the meeting is likely to be what it has been dubbed as: the summit of the lame duck and the dead duck."

LATIN AMERICA

ARGENTINA: "Two Going To Drift"

Claudio Uriarte, international analyst for left-of-center Pagina 12, wrote (8/31): "This week two politically finished men will meet to deal with the situation of a dying country. The two men are Boris Yeltsin and Bill Clinton, and the dying country is Russia.... The summit starting tomorrow and finishing on Wednesday has only few possibilities of impacting on the Russian crisis. Because today both the US and Russia do not have reliable leaders, which is in itself a dangerous situation."

BRAZIL: "A Visit That Will Be Marked By Improvisation"

Readers of center-right O Estado de Sao Paulo saw this by its Washington correspondent, who said (8/31): "Without anything to offer to the Russians besides his sympathy, President Bill Clinton travels to Moscow today on the most risky international mission of his administration.... The visit promises to be marked by improvisation.... Clinton needs to use this trip politically to prove to Americans that the sexual scandal that threatens him has not affected his capacity to fully...project American leadership to the world. Maybe Clinton benefits from the fact of having his friend, Boris Yeltsin, as host, a leader who will be in an even more fragile position than he (Clinton) is, and who is considered by various specialists as a figure that is politically finished."

For more information, please contact:

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Telephone: (202) 619-4355

8/31/98

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